A recent final judgment by the Beijing Fourth Intermediate People's Court has upheld a lower court's decision in a online intellectual property and defamation case, requiring a content creator to issue a public apology and pay significant compensation to the operator of the popular e-commerce brand East Buy.

The Beijing Internet Court publicly released details of the civil judgment, which resolves the network infringement dispute between Oriental Selection (Beijing) Technology Co., Ltd., the company behind the East Buy brand, and an individual surnamed Zhang. The court's final ruling dismissed Zhang's appeal and ordered him to prominently display a formal apology across his multiple social media accounts for at least seven days, as well as pay 201,000 yuan in damages. This amount includes 50,000 yuan for legal fees and 1,000 yuan for notarization and evidence collection costs. As Zhang failed to comply with the apology requirement, the company has initiated a court-enforced execution process, which has now been formally filed.

The case centered on disparaging comments Zhang made in videos posted on his accounts, which include handles like "Shuoshu Ren Tutu" and "Shuoshu Ren Tuba Shu". These videos discussed two specific topics related to East Buy's financial reports. First, regarding "government subsidies" mentioned in the company's fiscal 2024 report, Zhang interpreted this as "promotional fees collected from the government." However, the court found that the company's official report clearly classified this as "government subsidies related to local municipal business development," a point that had been clarified in multiple public statements. The court determined that general public perception and the evidence presented did not support Zhang's conclusion.

Second, concerning a transaction involving shares in a subsidiary related to the departure of celebrity host Dong Yuhui, Zhang posted content implying the company had "tearfully profited" from the deal. The court noted that East Buy had publicly disclosed the relevant share purchase arrangements and the final transfer price of over 76 million yuan through official announcements on July 25, 2024, and in its subsequent financial report. The court ruled that after these disclosures, the public could not reasonably have reached Zhang's conclusion that the company unjustly profited. Furthermore, Zhang continued to post response videos even after the company issued statements refuting his claims, demonstrating clear subjective fault.

The court also acknowledged the significant influence of Zhang's online accounts and the widespread dissemination of his statements, which caused reputational damage to East Buy. This was exacerbated by Zhang continuing to post videos and even using the litigation to attract traffic during the court proceedings. His counterclaim was rejected, and the court found a clear causal link between his actions and the harm inflicted. The judgment mandates that within ten days, Zhang must publish a court-approved apology at the top of his accounts on platforms like Douyin, WeChat Channels, Xiaohongshu, and Kuaishou for no less than seven days. Failure to do so will result in the court publishing the judgment details on its official website at Zhang's expense.

This is not the first legal action East Buy has taken against online detractors. Recent cases have resulted in public apologies and financial penalties for other content creators who spread misinformation. Legal experts have noted that this judgment reinforces the boundary between free speech and defamation, highlighting that interpretations of corporate financial data must be grounded in official disclosures, not unsubstantiated speculation. The ruling sends a clear signal against the malicious exploitation of trending topics to spread false information for profit, aligning with broader regulatory efforts to clean up the online environment and protect business reputations.